Accounting Problem

Topic: Inventory on Consignment

Instructions

Please refer to Inventory on Consignment.png. these are the instructions to the question. Please also refer to Template.png as this shows the costs of the items. Based on this information, Prepare the appropriate Adjusting Journal Entries supposing that We are the consignor

f. Inventory on Consignment At December 31, 2020; the company received the following information for inventory on consignment: 1. All X105 machines were sold for $12,500 each. 2. Three of the J050 machines were sold for $7,200 each. The consignee received 6% commission on each sale and was allowed a 2% allowance for advertising. The consignee will pay the company the amount owed on January 15, 2021.Item # Description Cost PK0366 X105 15 HP Machine 9,800.00 PK0367 X105 15 HP Machine 9,800.00 PK0368 X105 15 HP Machine 9,800.00 PK0369 X105 15 HP Machine 9,800.00 PK0370 X105 15 HP Machine 9,800.00 PK0371 X105 15 HP Machine 9,800.00 PK0372 X105 15 HP Machine 9,800.00 PK0373 X105 15 HP Machine 9,800.00 PK0374 X105 15 HP Machine 9,800.00 PK0375 X105 15 HP Machine 9,800.00 PK0376 X105 15 HP Machine 9,800.00 JH14456 1050 5 HP Machine 5,600.00 JH14457 1050 5 HP Machine 5,600.00 JH14458 J050 5 HP Machine 5,600.00 JH14459 J050 5 HP Machine 5,600.00 JH14460 J050 5 HP Machine 5,600.00 JH14461 J050 5 HP Machine 5,600.00 141,400.00